Baidu reported a second consecutive quarterly revenue decline of 2.6% to 18.21 billion yuan ($2.65 billion) for the fourth quarter ended December 31.
This drop was attributed to ongoing regulatory scrutiny into healthcare advertisements, which analysts estimate account for 20-30% of Baidu's search revenue. Net income plummeted by 83.3% to 4.13 billion yuan.
Despite the revenue and profit slump, Baidu's U.S.-listed shares rose 2.4% in after-hours trading as adjusted earnings per share of $6.49 exceeded analysts' expectations of $6.07. The company's online marketing revenue also saw an 8.2% decrease.
Baidu's CFO expressed optimism for recovery and growth in 2017.
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